An employers’ group has called for greater accountability among the organisations responsible for improving growth in England’s regions.
The Federation of Small Businesses said that Local Enterprise Partnerships “must be more transparent”.
It was responding to criticism of the bodies from the Commons public accounts committee.
The partnerships are designed to bring together the public and private sector, so that local decision-makers can decide on the economic priorities in their areas.
Mike Cherry, the federation’s national chairman, said: “The need for greater LEP accountability has never been more pressing, as the partnerships are set to receive increased funding. The government should insist that LEPs publish a register of business interests and fulfil their obligation to appoint a small business champion to their board.
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“While a number of LEPs have proved effective at driving growth, more must be done to ensure partnerships are delivering for their local economies.”
The partnerships, which replaced Regional Development Agencies, were established six years ago. The 39 LEPs have received £7.3 billion in funding since March and are set to receive a further £2 billion a year until 2021.
Concerns have been raised that deals involving public money could be agreed behind closed doors and given to favoured companies. This month it emerged that millions of pounds had been spent on companies run by LEP board members or on companies run by their associates.
The public accounts committee said: “LEPs have signed up to local authority accountability frameworks but their functions and structures are very different to local authorities and accountability for their activities is opaque.”